I agree with your analysis completely.The company is conservatively managed, has an excellent product, and enjoys phenomenal customer loyalty.

Its key differentiators are 1. its long and consistent track record of rapid implementations (SAP's Achilles Heel), its "multi-" capabilities (multi-site, -language, -currency, -platform) which sutis it particularly well for distributed, decentralized operations, and its exclusive focus on industries where it has a strong fit (medical, automotive, food & beverage, etc.)

It is transitioning from a "Mom and Pop" (literally) company to a public one, and its management is increasing in maturity.

So why is it sitting around 15?

Answers: They don't sell services, they haven't grown by acquisition, and they haven't diversified into other markets. Thus, they have grown only by selling more (the old-fashioned way.)

Their technology is "old" but solid. Gartner Group rates them #1 in the mid-market for ERP, where traditionally technology is not a driver. So their product is solid, but not sexy.

There are 26M shares out, but the float is only 6M, so there's not a lot of the stock to buy, and the institutions haven't jumped on it.

Their EPS are the same as Baan, but price is 1/3. Thus, their P/E is 1/3 as well. Their year-end (1/98) earnings were solid, but were $.04 below estimates due to an accounting glitch (achieved yearly estimate of $.37 but restated some of the Q4 profit back into Q2.) They fired their CFO in 11/97 and didn't replace him until 4/98, so Wall Street got nervous.

So what do you do? Buy Baan or SAP or JDE and feel good because you're running with the herd. Or buy value, accumulate QAD, and wait for your reward.